In this research there is focused on three elements such as basic apprehension of Islamic banking, its chances to turn in the UK and challenges. These elements are closely related to development of this new and fast turning fiscal system in the UK. It is concluded from the research that all group of user of Islamic fiscal system have clear understanding about Islamic sha’riah and Islamic fiscal system. They know that Islamic banking system is based on the construct of involvement free in any sort of concern. All types of involvement such as involvement receiving and paying are wholly prohibited in Islam because it leads the economic system toward recognition crises such as recognition crunch is the best illustration of involvement based economic system. Harmonizing to research it is concluded that the importance of Islamic bookmans is outstanding for the development of Islamic banking. In the research all groups are agree that Islamic bookmans are taken determinations harmonizing to Islamic sha’riah. But the job arises about the figure of bookmans because there are three or some clip four bookman present whole Islamic fiscal systems. The users of Islamic banking are worried about deficiency of bookmans in this field because Islamic finance is a fast growth sector and it contains solutions of all fiscal jobs. Due to this deficit of bookmans it is hard to update the system harmonizing to current demands of the society and this job will impact the growing of Islamic banking in the UK.
The 2nd portion of research shows that Islamic banking has greater chances to turn and develop in the UK. Islamic banking system began its concern in 2003 in United Kingdom due to its popularity and credence in less than five old ages it stands as a outstanding fiscal participant in the UK fiscal market. Islamic Bank of Britain has eight subdivisions which are to the full disciplined and easy assemble to all communities through online and subdivision indoors. On other manus HSBC and Lloyd TSB are supplying great services through most of their subdivisions.
Islamic banking has greater chances to turn in the UK due to its South Asiatic Muslim community which largely come from Pakistan, India and Bangladesh because these people are fiscal strong and playing their function as a active member of UK economic system. Most of the participants are agreed that Islamic banking will heighten the investing chances in UK because Muslim community can easy put in any sort of concern which is allowable harmonizing to Sha’riah jurisprudence. It is concluded that greater investing chances lead to heighten the economic status of the state. With increasing demand of Islamic fiscal services in Muslim community Financial Services Authority and the UK authorities are truly helpful to this new fiscal system to advance its concern on modern footing. Presently Islamic banking in the UK has advantages of popularity, credence, blessing and range over other Western states.
Islamic banking is confronting the trouble of its service web throughout the state because Muslims are the 2nd largest community of the UK but there are few Bankss and Islamic establishments are involved in this concern which are non able to supply full satisfaction to whole community. With increasing demands of community such as Home Finance services, different classs of Insurance policies, loan for enlargement of concerns and short loan such as recognition cards and overdraft installations Islamic banking demands to better its services to last in the UK fast turning economic system. Islamic banking has besides some other challenges of harmonisation of Accounting system in different states even in the UK there is different intervention between the Islamic fiscal suppliers. Nowadays Islamic banking has a deficit of qualified and skilled squad members in selling, gross revenues and fiscal sectors.
Finally, it is concluded that Islamic banking has some challenges in Western states but with increasing experience, with corporation of Muslim community and with proper counsel of Islamic bookmans Islamic banking can be easy turned these challenges as a cardinal success.
Some major challenges and issues are discussed in the Results and Discussions portion of the thesis if Islamic banking overcomes of these troubles and challenges than there is no any hurdle in the development of Islamic fiscal system in the UK. Islamic banking has some challenges due to fiscal apparatus of the Western states where regulations and ordinances are more compatible to conventional banking system and some of them due to its early age in the fiscal sector.
In the United Kingdom Islamic fiscal system has deficiency of proper and strong institutional system. Islamic banking demands to better the subdivision web throughout the state. If Islamic fiscal service supplier work together under combined understanding of establishing new merchandises and some other countries where merge activities are more accessible and utile to clients. Through this process they can easy better and develop Islamic fiscal system.
Islamic banking has besides the deficit of qualified Islamic bookmans. To better the fiscal system they need to engage more bookmans who provide in clip and valuable information to service suppliers. Islamic banking demands to put in this sector because without this investing it is impossible to stand the Islamic banking on its true basicss.
Presently Islamic banking is confronting the hurdle of different Accounting policies. It is a large obstruction in the manner of development of Islamic banking because it creates the job for internal and external investing. It is besides hard for investors to take determinations about their investing. Islamic banking demands to work hard to harmonise the fiscal statements. The Accounting and Auditing Organization for Islamic Financial Institutions can play of import function to develop the uniformity in Accounting Standards ( Shanmugam, Perumal and Ridzwa, 2004 ) . The uniformity of fiscal coverage will better the Islamic banking services and it will truly helpful to all shareholders particularly clients and investors.
It is really of import for growing and development of Islamic banking system that the addition in the figure of its users. To increase its history holders it is necessary to make the consciousness in community about virtues of Islamic banking. The function of Imams of Mosques is really of import to make the consciousness in the community. There is demand to carry on the selling and consciousness seminars on different topographic points and different occasions. Nowadays there are many Islamic channels are working in the UK if they start regular consciousness transmittal in their programmes so it is truly helpful to develop the Islamic banking system in the UK.
Presently Islamic banking has non any specific option of recognition cards, personal and occasional loans which fulfil the clients ‘ demands to pay their day-to-day sweeps. Harmonizing to my recommendations if Islamic banking wants to acquire popularity and concern so they need to present the compatible fiscal policies and fiscal tools to conventional banking. Many of Muslims are still confused about to take Islamic banking histories because they are non satisfied that Islamic banking will carry through their all demands.
Although Islamic banking improved their concern over the five old ages clip but still it is non in place to take over the conventional banking because the UK is really fast gait and expensive state and presently it is hard for clients of Islamic banking to run into all demand from Islamic banking window. Islamic banking demands to better the services harmonizing to criterion of conventional banking that will assist to clients for their demands.
Harmonizing to my experience during the clip of research I found that chief and important drawback in the development of Islamic banking is deficiency of good client services in subdivision sector. They have less staff and some staff members have non adequate information about how Muslim banking is working particularly in investing side. They are experiencing vacillation to discourse some issues that relates to basicss of Islamic banking. It is recommended that there is demand to better client services on same lines of conventional banking such as client services of HSBC that will truly helpful to develop Islamic banking establishment on modern footing in the United Kingdom.
There is need to concentrate on Research and Development to better and develop this new fiscal system in the UK. Research and Development is truly helpful to hike the system because through these studies they can better their services and present new merchandises in market harmonizing to the demands of Muslim community. Although selling and research sections of Islamic banking are playing of import function but they need to work hard to do Islamic banking a strong pillar in fiscal sector of the United Kingdom.
Presently there is deficiency of trained, skilled and professional staff in Islamic banking line. Islamic banking demands to engage qualified fiscal applied scientists and bookmans to better the system. Islamic banking demands to put in instruction and preparation to existence staff to better their cognition and up to day of the month harmonizing to current state of affairs. This will better client services and helpful to market and merchandises development of Islamic banking.
7.2 Restriction to Methodology
In methodological analysis subdivision my proposed program was to carry on seven interviews in which three from banking governments, two from the Muslim who are utilizing Islamic banking and two from the Muslim who are non presently account holders of Islamic banking but really I made three interviews in each classs due to the more involvement of Muslim people to take part in the research.
I was planned to reach with non-Muslim people to discourse about the pattern of Islamic banking in the UK but unluckily I have non found any individual who have any sort of information and cognition about the system of Islamic banking. But harmonizing to banking governments they have clients from all religion and faiths.
Harmonizing to proposed planned I wrote the letters to banking governments and some clients to take assignments to discourse about the pattern of Islamic banking, its growing in the UK and challenges of Islamic banking. But I received few assignments staying I got on telephonic contacts.
In the class of in-depth interviews I merely take the written notes but my planned was to maintain the voice record of all interviews. But really there is hurdle to maintain the frailty record because in this state of affairss there is opportunity that interviewees experience vacillation to reassign the information. In the start of research I planned to acquire information through in-depth interviews every bit good as I will carry on the mini unfastened ended questionnaires but really due to clip restraint I merely concentrate on interviews because in the usage of both methods it is hard to pull off the information in this short period of clip.
7.3 Suggestions for Further Research
This research was conducted through phenomenological ( qualitative ) attack which described the history and pattern of Islamic banking all over the World by and large but particularly in United Kingdom. It provides a clear apprehension of funding manners of Islamic banking, drawback of involvement on economic system and benefits of investing through Islamic fiscal system. This research besides provides the indexs of growing of Islamic banking in UK and critically rating of challenges of Islamic banking in Western states particularly in UK. I found the qualitative attack is best option to look into the positions of the community and banking governments in item.
The farther research could hold been made in the sector of Research and development in connexion with all necessary agreements of conceptual apprehension of Islamic finance and banking in Islamic fiscal sector in general and its impact on economic system as a whole.
The country which can straight impact the growing and development of Islamic banking is the function of Government engagement and intercession in supplying necessary agreements for statute law and legal model. Harmonizing to my sentiment the research in this sector will be really utile for development of Islamic banking every bit good as to heighten the UK economic system.
As I discuss that Islamic banking is turning industry in the western states and it is confronting the challenges of deficiency of qualified bookmans and skilled workers. If Islamic banking establishment overcomes this issue it will stand as a respectable fiscal participant in immense fiscal market of the UK. I suggest that there is a demand of research in the sector of Training and Development it will truly helpful to advance Islamic banking in western states particularly in the UK.
These research countries can be extended on geographically footing and the analysis can be more good if it is extended up to all Western and European states.